Jelmer Baukema

Van Doorne is appointing five of its specialists as partners with effect from 1 January 2023

In this edition, key questions about Distressed M&A transactions in the Netherlands, covering issues such as Market climate, Due diligence, Transaction structures, Regulations and updates & trends are answered by Van Doorne specialists Jeroen Sombezki, Jelmer Baukema, Michiel Melief, Sanne Strijbos, Willemijn Bouman and Vivan IJzerman, who were invited to contribute to the The Netherlands chapter of the 2022 Lexology GTDT – Distressed M&A handbook.

For the first time, a restructuring plan has been confirmed under the new Court Approved Restructuring Plan Act (Wet Homologatie Onderhands Akkoord, or WHOA). This court confirmation illustrates how a "Dutch Scheme" comes about in practice. In this article our restructuring specialists Jelmer Baukema and Willemijn Bouman briefly discuss the court confirmation.

Distressed M&A is a comprehensive guide to law and regulation governing the sale of businesses in financial distress. Topics covered include the market climate and legal framework; transaction structures and the sale process: the critical areas for due diligence; valuation and financing; relevant documentation; and regulatory and judicial approval and dispute resolution.

Update 12 May The Dutch government has extended the existing guarantee schemes to provide credit support. In this article, we provide a description of the relevant schemes and how these have been extended in connection with the COVID-19 outbreak. Enterprises that are not eligible for the schemes discussed below may use any other government measure of to address liquidity issues, such as the Concession Measure on Preservation of Employment (Noodmaatregel Overbrugging voor Werkbehoud or NOW) and tax measures. Please see our Corona-hub for more information on liquidity issues, financing and restructuring.

In times of crisis, liquidity is essential for a company's continuity. An important part of maintaining sufficient cash flow is managing debtors efficiently. Good credit management limits credit risks and optimises working capital, which is crucial in difficult times. Are you having problems with customers who ask for a postponement of payment, or just do not pay? Do you have customers who you know are at risk of not surviving this crisis? If a company has properly safeguarded its rights as a creditor, as a result of which risks have been identified and anticipated at an early stage, such problems have less impact on the company. It also makes it possible to make proper arrangements for a customer's deferral of payment.

Directors of companies in financial distress are confronted with many different issues, including liability issues. More information about these liability issues is provided in this article.